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Contract Management & Supplier Management
– From Tender to Execution


Managing contracts can be an underestimated discipline. But Contract management is the process of managing contract creation, execution, and analysis to maximize operational and financial performance within an organization, all while reducing financial risk. 

All business agreements should be finalized with a contract. To mitigate any risk in those agreements and create strategic relationships, contracts should be managed professional with focus on important topics, such as: 

  • Initial requests. The contract management process begins by identifying contracts and associated documents/templates to achieve compliance to contract.
  • Identifying Contract amendments and clarifications during tender phases and contract negotiation.
  • Prepare contract negotiation – including researching the other party’s needs before the negotiation to simplifie the process and create a strong foundation for a lasting relationship.
  • Pricing structures – identifying key items for pricing structures
  • Milestone achievement and payment schedule 
  • Review of contract – risk identifications, process procedure requirements, general terms & conditions, escape clauses, contract options & requirements, back-to-back and/or flow down to sub-suppliers (wrt. HSE&Q, scope, time, cost, penalties, LDs, reporting requirements, audit, compliance requirements, handover, warranty). Ensure the individual topics are transferred to the needed frames for execution of the contract.  
  • Execution of contract – ensure fulfilment of contract obligations during execution, interface management, governmental interface, ensure compliance towards sub-contractor(s), variations – and claim management, continuously lessons learn for futures contracts and/or implementations of generic contract templates. 
  • Monitor any potential changes or breaches of contract.

 

  • 🔹 Pre-Award and Tender Phase

    • Identifying relevant contract templates and documentation to ensure compliance and consistency
    • Highlighting and addressing contract amendments and clarifications during tendering and negotiation
    • Preparing for negotiations by researching the counterparty’s position, needs, and commercial expectations
    • Designing clear and robust pricing structures and payment schedules, including milestone-based payments

  • 🔹 Contract Review & Risk Assessment

    • Identifying contractual risks, obligations, and compliance requirements
    • Reviewing general terms & conditions, scope alignment, and specific clauses (e.g. liability, penalties, LDs, escape clauses)
    • Assessing back-to-back or flow-down requirements to sub-suppliers (HSE, quality, delivery, audit, reporting, etc.)
    • Structuring the contract content to ensure smooth transition into execution

  • 🔹 Execution Phase

    • Ensuring fulfilment of contractual obligations, managing interfaces (internal/external), and aligning with governmental and regulatory requirements
    • Handling contract variations and claims professionally, with structured documentation and communication
    • Monitoring milestones, payment triggers, and deliverables
    • Capturing lessons learned and improving future contracts and template frameworks

  • 🔹 Supplier Performance Management

    • Ongoing monitoring of supplier obligations and KPIs
    • Managing underperformance through structured dialogue, follow-up, and escalation
    • Ensuring alignment between commercial expectations and actual delivery
    • Strengthening supplier collaboration for long-term value creation
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If you’re in need of a Contract Manager or interested in a dialog on how a Contract Manager can benefit your Company – Contact V2E. 

Contact V2E